51-100 Employees? Not a small business under Obamacare

Businesses with 51-100 employees will not face stricter benefit requirements for their health insurance plans in 2016. President Obama quietly signed the Protecting Affordable Coverage for Employees Act (PACE Act) into law on October 7th, enacting a bipartisan tweak originally introduced by Senate Small Business Committee Members Jeanne Shaheen (D-NH) and Tim Scott (R-SC).

Currently, small businesses (those with 50 or fewer employees) have benefit requirements under the ACA that have led to higher premiums. These businesses are exempt from penalties requiring businesses to offer employees coverage. Beginning on January 1, 2016, those benefit requirements were scheduled to expand to small businesses with 51 to 100 employees. This change was projected to raise premiums for these firms that are required to offer insurance or face penalties. The PACE Act prevents this change. States can individually define small businesses, however, up to 100 employees.

For more on healthcare policy and how health reform may impact you, join the WIPP healthcare committee.